Investment & Mortgages Bank aka I&M has received an authorised depository license from the capital markets authority (CMA) joining other banks such as Barclays, NBK, Stanbic, KCB and Co-op.
Monthly Archives: October 2006
Wealth Declarations & Diva Cards
Wealth Declarations
It’s wealth declaration time again for the third year. The process was spearheaded by the intent to curb corruption by having leaders, mainly politicians, publicly declare their wealth. But we are yet to see feedback from anyone/authority who has seen our previous declarations.
According to the latest Adili (No. 82) from Transparency International, a miscellaneous bill in parliament will modify the act so that wealth declarations will be filed every two years, and not annually as is the current case. So far only a few politicians have made public their wealth which was the original intent of the act. Adili also argues, that by requiring only a few key individuals to file returns, Uganda (16,000) and Tanzania (5,400) may be able to handle the huge volume of wealth declaration data than Kenya (with over 650,000 annual returns).
Diva Cards
Standard Chartered has introduced a diva card for women. The card, which has been rolled out in other countries, is a variation of their flat fee account now re-modeled for women to include discounts on auto assurance, health checks, and at some restaurants, salons and health clubs as well as an unsecured loan or overdraft at 15% p.a.
biz tip One great thing about flat fee accounts is for parents (or anyone)sending money abroad to use the free local/foreign transfer (one a month) contained in most of these accounts to send fees or other funds abroad at no extra charge. This can save about 3,000 shillings each time.
Other
– The Nairobi-Mombasa air route is getting more crowded/competitive with Air Kenya (with a new Dash-8) joining East African Safari Air, and soon Fly 540 to take on Kenya Airways who have dominated the increasingly busy route for years.
– The Kenya Power & Lighting Company (KPLC), who currently achieve 95% collections, have advertised to outsource their debt collections.
– The Kenya Wildlife Service (KWS) has advertised to upgrade their smart card system for park entry.
Nyramids
Nyarmid: (defn) Nairobi pyramids are not physical structures, but they are everywhere, some in classy buildings, and some in run-down ones where they do business, spread the word, and churn the money.
They are known as investments schemes, savings plans, multi-level, merry go rounds, revolving funds, savings plans, investments. No one calls them ponzis or pyramids.
They are unregulated and their exclusivity and extremely attractive returns make them too enticing for many. They spread virally, by word of mouth from people eager to share their good fortune, to others who have not seen the light.
One group is associated with an up-coming communications company. Maybe the company wanted to tap a cheap source of unlimited funds for expansion instead of going to a bank – but it has worked for the company which still runs one of the better-established funds.
The wars between funds are vicious with some bad-mouthing their competitors. One allegedly leaked information to the CBK – leading to the swoop on a competing group last week.
They are untouched by any authorities, even though the Central Bank of Kenya (CBK tried to shut down one last week. They will not be affected even by the micro-finance bill scheduled to pass through parliament later this year.
Since they don’t lend money, and are not accepting deposits, I can’t see how they can be regulated by the CBK. But many rely on the banking system, giving some oversight to accounts that have high volumes of transactions and values. Even bank tellers are curious enough about people banking multiple checks into their accounts to ask about how/where they can sign up!
The shocking thing is they actually work – or have worked for some people. I have never joined one, but know many who have – friends more accustomed to risk, some who have invested as little as 2,000 to as much as 100,000 shillings in more than one of these, with the money doubled in a year. Some have provided a steady monthly income that supplements or even doubles their monthly income. Maybe because of their better contacts and networks, they are at the top of the pyramids, the early investors who get paid by the later investors, but they have all done very well.
I almost feel stupid for not joining any. Am I any better for buying shares in Uchumi or leaving money in the bank earning almost nothing from a savings account?
My problem is I am too cautious, too curious, ask too many questions. Questions the backers of these never want to answer. You’re either in or you’re not, you want to get paid or you don’t. Still, I rely on the conventional wisdom that nothing is free and anything that sounds too good to be true, probably is.
Hedge Funds to Africa
Excerpts from a China news report: Some hedge funds are turning to resource-rich sub-Saharan Africa for investment, a fact reflecting an upward trend in some of the region’s economies and the growth of hedge funds and their search for new frontiers, The Wall Street Journal reported on Friday.
Citigroup is now trading securities from countries such as Kenya, Botswana, Tanzania, Uganda and Ghana for its clients. Within a few years, it has gone from trading in only two countries in sub-Saharan Africa to 12.
Banks wanted
Standard Bank (aka Stanbic) is seeking mid-size retail banks in Kenya, Nigeria, Ghana and Angola, in addition to investing heavily in its own operations in Kenya to grow them at 25 percent a year,
Stanbic is Kenya’s 12th largest bank and its assets grew by 36% in the half-year.
Great image from airliners.net
Diamond Trust Rights Issue
Diamond Trust Bank has announced a rights issue which will be presented for shareholder approval at an extraordinary general meeting on November 1. D-Trust has been my best performing recent share, bought at 27/= in September 2005, and now trading at 84/=. Hat tip to Gathinga and Coldtusker for their comments on the capital issue after the AGM in May.
Black eyed TI
Got the latest Adili report from Transparency International Kenya (TI Kenya) in the mail yesterday. It’s hard to take the organisations findings on corruption seriously after the mud-slinging between the board and executives over the last two years.
Volley-low
Officials who threatend Kenya women volleyballers who had complained about unpaid (and promised) allowance, are also going to receive allowances as well even as the team is stll trying to raise money for the Japan trip.
Your Shell franchise here
Shell Oil is llookng for retailers to open/operate new stations in Naiorbi, Mombasa and Nakuru. You must be able to raise 10 milion shillings, and the deadlien is October 18.
Language of the future
UoN has passed out first graduates at its Confucius Institute (Chinese language centre).
Read on the launch.
Wilted flower
What should be an interesting story on the threat to the Kenya flower industry from Ethiopian incentives, is sadly hidden behind a veil superior posturing that annoys rather than educates.
Foreign companies “who provide homes, education, healthcare, water, electricity – everything“, will flee the “endemic corruption and rising insecurity” of Kenya.
Left out of the story are Kenyan-owned flower companies who are not going/able to pick up and move to Ethiopia – and who still have to comply with expensive & stringent EU conditions in order to continue exporting to Europe.
Jobs
Policy research officer Africa at Action Aid. Apply to vacancies@actionaid.org 15 October
Southern and Eastern Africa Analyst at Control Risks (London). Apply to reference437@control-risks.com by 20 October.
Parliamentary Service Commission: Senior deputy clerk, principal research officer, principal budget officer, principal legal counsel, budget officer I, and budget officer II. Apply through pricewaterhousecoopers at ess.ke@ke.pwc.com by October 20.
Precision Air Tanzania (49% KQ owned): Captains (6), first officers (3) and sales manager. Apply through PWC at pwrecruit@precisionairtz.com
Software developers at Sasanet. Apply to coders@sasanet.co.ke
UN HABITAT
Details at their site: http://www.unhabitat.org.
– Chief, Urban Environment Section, P 5, Nairobi. Deadline is 10 October
– Head, Shelter Branch, D1, Nairobi. Deadline is 22 October.
Food aid specialist at USAID. Apply to hrnaiorbi@usaid.gov by October 20
Team assistant at the World Bank’s Water and sanitation program (WSP) apply to wspaf@worldbank.org by 19 October
Deputy managing director and officer manager at an un-named property management company. Apply to
gd@africaonline.co.ke by 19 October.